HUD Office of Affordable Housing Programs NCDA’s Winter Legislative and Policy Conference January 21, 2010

TOPICS 2 A look back at FY 2009; A look back at FY 2009; FY 2010 and FY 2011 HOME and National Housing Trust Fund Budgets; FY 2010 and FY 2011 HOME and National Housing Trust Fund Budgets; HOME Policy Update – TCAP, Housing Trust Fund Implementation, HOME Proposed Rule; HOME Policy Update – TCAP, Housing Trust Fund Implementation, HOME Proposed Rule; IDIS Online Reports Status. IDIS Online Reports Status.

A Look back at 2009 New Administration New Strategic Plan New Vernacular: ◦ Recovery, NSP 2, HPRP, TCAP ◦ Transformation Initiative ◦ Choice Neighborhoods ◦ Catalytic grants ◦ Rental Reformation 3

A Look back at 2009 – cont. HOME Accomplishments : ◦ New homebuyers: 25,873; ◦ Rental production: 37,861 (includes 18,763 TBRA); ◦ Energy Star Certified Units: 4,652 ◦ Units completed since 1992: 925,327 ◦ Cumulative TBRA households: 216,563 4

FY 2010 HOME and HTF Budgets FY 2010 HOME and HTF Budgets $1.825 billion Transformation Initiative $1.8 billion ? ? HOME - total T.A W.C.F. HOME - Formula Trust Fund 5

FY 2011 HOME Budget FY 2011 HOME Budget 6

TCAP Recap Status of the $2.25 billion awarded (as of 1/11/2010): ◦ Funds committed to projects: $1.1billion (47.3% of total); ◦ Number of unit commitments: 23,558 ◦ Amount disbursed: $87.8 million (4%) ◦ Average per-project TCAP commitment and units: $3.2 million / 67 units 7

Housing Trust Fund (HTF) Housing Trust Fund (HTF) Awaiting Funding ! Proposed Formula Rule Published- Comments Due February 4, Expected Release of “Interim Rule” Design principles: ◦ Trust Fund: a ‘source of money’ for affordable housing - not a ‘program’ ◦ Add to HOME Program Regulations 8

HOME Proposed Rule First major regulatory changes to HOME regulations since 1996, will address: ◦ Property standards/energy efficiency ◦ PJ and CHDO performance problems ◦ Common compliance issues ◦ Frequently misunderstood provisions HUD will conduct outreach in January/February

HOME Program OIG Issues Act Now!

OIG Audit - Program Income IG audited 45 PJs regarding PI ◦ 29 PJs drew down more than $79 million of HOME Program funds during 2007 and 2008 while they had PI on hand ◦ 26 PJs had a combined $39.6 million of PI in their local accounts ◦ 40 PJs did not report PI timely, accurately or at all during this period 11

Program Income – cont. Corrective Actions ◦ Expedite programming and implementation of IDIS PI module to permit proper operation for PI draws ◦ Incorporate additional PI questions in the HOME Monitoring Exhibits (CPD Monitoring Handbook) 12

OIG Audit - Commitments OIG internal audit looked at: ◦ Date of IDIS project set-ups v. written agreements ◦ Open Activities with no draws or no recent draws 13

Commitments – cont. IG found widespread instances of PJs funding projects in IDIS without executed written agreements due to: ◦ Ignorance of rules ◦ Deliberate attempts to avoid deobligation 14

Commitments – cont. Open Activities Problems ◦ Huge number of open activities with no draws:  Our data shows 2,162 HOME activities funded for more than 1 year with no draws  Overstating commitments by $341 million ◦ Similarly large number of open activities that are partially drawn but have not had draws for years 15

Expiring HOME Funds FY 2003 HOME funds subject to recapture by U.S. Treasury on 9/30/2010. $62.8 million currently subject to recapture See handout for YOUR state’s balance. 16

HOME Reports Update Available now: ◦ Deadline Compliance Status Report ◦ Open Activities Report ◦ Vacant Units Report Available later this month: ◦ National Production Report ◦ SNAPSHOTS (including Red Flags) ◦ Dashboards ◦ ADDI Accomplishments / Detail Reports 17